Smart Health Shop Forum Blog: French Prosecutors Put IMF’s Lagarde Underneath Investigation

Wednesday, August 27, 2014

French Prosecutors Put IMF’s Lagarde Underneath Investigation

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International Monetary Fund Managing Director Christine Lagarde. Chip Somodevilla/Getty Images hide caption

itoggle caption Chip Somodevilla/Getty Images

<img data-original=”http://ift.tt/1vQHoBe” title=”International Monetary Fund Managing Director Christine Lagarde.” alt=”International Monetary Fund Managing Director Christine Lagarde.”/>

International Monetary Fund Managing Director Christine Lagarde.

Chip Somodevilla/Getty Images

Christine Lagarde, the head of the International Monetary Fund, says French prosecutors have put her under formal investigation.

The New York Times reports:

“Ms. Lagarde said in a statement through her lawyer that she was being investigated for ‘simple negligence,’ by the Court of Justice of the Republic, the judicial body that is charged with investigating the conduct of high government officials.

“Ms. Lagarde, who has denied wrongdoing from the start, said in a statement that the decision by a judicial committee to place her under formal investigation was ‘totally unfounded’ and that she would be returning to work in Washington on Wednesday afternoon.

“‘After three years of investigation and dozens of hours of interrogation, the committee concluded that I had not been guilty of any infraction,’ the statement said, ‘so it was reduced to claiming that I had been insufficiently vigilant during the arbitration.’”

The BBC explains that this dates back to a 2008 case involving businessman and Sarkosy supporter Bernard Tapie. When Tapie sold Adidas, he claimed that the partly-state-owned bank Credit Lyonnais “had defrauded him by deliberately undervaluing the company.”

Lagarde, then the finance minister, referred the matter to an arbitration panel, which decided in Tapie’s favor, awarding him $527 million.

The Times explains that under the French system, “a formal investigation suggests prosecutors believe they have enough of a case that they may ultimately bring criminal charges and trial.”

Reuters adds:

“The inquiry has already embroiled a number of of Sarkozy’s cupboard individuals and France Telecom CEO Stephane Richard, who was once an aide to Lagarde when she was once Sarkozy’s finance minister.

“In earlier rounds of questioning, Lagarde accused Richard of getting used her pre-printed signature to log off on a report facilitating the cost, native media has stated. Then again Richard has said that Lagarde used to be absolutely briefed on the subject.

“Investigators are looking to resolve whether or not Tapie’s political connections performed a task within the executive’s choice to lodge to arbitration that received him an enormous pay-out.”